Theoloeconomy School

Both economic theology and the theology of economics draw on various schools of thought from both economics and theology, often blending ideas in unique ways to address moral and ethical concerns. Let’s break down the common influences from both disciplines:

Economic Theology: Theological Influence on Economics

Theological Schools of Thought:

1. Catholic Social Teaching (CST): Economic theology often draws from CST, which emphasizes human dignity, the common good, solidarity, and the preferential option for the poor. Influenced by the teachings of popes such as Leo XIII (Rerum Novarum) and John Paul II (Laborem Exercens), CST promotes a balance between individual rights (such as private property) and social responsibilities (such as just wages and social welfare).

   • Key Concepts: Stewardship, solidarity, subsidiarity, and social justice.

2. Reformed and Protestant Ethics: Protestant thought, particularly Calvinist and Lutheran traditions, influence economic theology by linking work, vocation, and ethics. Max Weber’s Protestant Ethic is a classic exploration of how Calvinism contributed to the rise of capitalism, focusing on the moral implications of hard work, discipline, and frugality. However, modern economic theology often critiques unfettered capitalism from these same traditions, emphasizing justice and fairness.

   • Key Concepts: Vocation, moral responsibility, and economic justice.

3. Liberation Theology: Rooted in Latin America and championed by figures like Gustavo Gutiérrez, liberation theology views economic structures through the lens of the oppressed, advocating for systemic change to alleviate poverty and injustice. This school of thought heavily influences economic theology, particularly in critiquing global capitalism, wealth inequality, and exploitative systems.

   • Key Concepts: Preferential option for the poor, economic liberation, and structural sin.

4. Islamic Economics: Islamic principles, especially sharia law, form a foundation for economic theology in Muslim contexts. Concepts like the prohibition of riba (interest), the moral imperative of zakat (charity), and the emphasis on economic justice guide the development of economic systems rooted in religious law and ethics.

   • Key Concepts: Prohibition of usury, ethical trade, wealth redistribution.

5. Orthodox Theology: Byzantine and Eastern Orthodox traditions emphasize community, communion, and a holistic approach to life, influencing economic theology in ways that prioritize mutual care, stewardship, and the spiritual dimensions of material life. The patristic teachings, especially those of the Cappadocian Fathers, stress the importance of wealth being used for the common good and in service to others.

   • Key Concepts: Communal ethics, spiritual stewardship, and social charity.

Theology of Economics: Economic Thought Through Theological Lenses

Economic Schools of Thought:

1. Social Market Economy: The theology of economics often aligns with the social market economy model, which seeks a balance between free-market capitalism and government intervention for social welfare. This model is particularly popular in Christian democratic thought (e.g., in countries like Germany), where markets are regulated to ensure social justice and equitable resource distribution.

   • Key Concepts: Economic freedom balanced by social responsibility, welfare economics.

2. Distributism:
   Influenced by Catholic thinkers like G.K. Chesterton and Hilaire Belloc, distributism is an economic philosophy that opposes both socialism and unfettered capitalism. It advocates for widespread ownership of property and small-scale enterprises, believing that economic power should be decentralized. This approach aligns well with theological ethics that emphasize human dignity, localism, and communal responsibility.

   • Key Concepts: Decentralization, wide distribution of property, local economies.

3. Keynesian Economics: The theology of economics is often influenced by Keynesian economics, which advocates for active government intervention in markets to address inequality and ensure economic stability. The focus on social welfare programs, unemployment insurance, and other forms of safety nets resonates with theological teachings on the preferential option for the poor and the need for economic justice.

   • Key Concepts: Government intervention, social safety nets, full employment.

4. Cooperative Economics and the Solidarity Economy: Rooted in Catholic social teaching and liberation theology, this school emphasizes the development of cooperative forms of ownership, such as worker-owned businesses and community-driven economic projects. The solidarity economy seeks to create a system where profit is secondary to social well-being and sustainability.

   • Key Concepts: Cooperatives, mutual aid, and economic democracy.

5. Ecological Economics: As concerns about climate change grow, the theology of economics increasingly incorporates elements of ecological economics, which challenges the traditional focus on growth. It promotes sustainable development and recognizes the limits of natural resources. This school of thought is deeply connected to theological views on stewardship of creation, especially in the context of Christian and indigenous teachings on the sacredness of the earth.

   • Key Concepts: Sustainability, environmental stewardship, ecological limits.

Critique of Neoliberalism

Both economic theology and the theology of economics frequently critique neoliberalism, the dominant global economic model that prioritizes free markets, deregulation, and privatization. Theologically informed critics argue that neoliberalism fosters inequality, environmental degradation, and exploitation, often at the expense of the common good. This critique is found across various theological traditions, including Catholic Social Teaching, liberation theology, and Islamic economics, all of which emphasize the need for ethical economic frameworks that protect the vulnerable and ensure justice.

Conclusion

Economic theology and the theology of economics do not adhere strictly to one particular economic or theological school of thought; rather, they draw from a range of traditions and frameworks to develop a moral critique of economic systems. Theologically, they engage with traditions like Catholic Social Teaching, Protestant ethics, and Islamic jurisprudence. Economically, they often align with schools like the social market economy, distributism, and Keynesian economics, while critiquing the moral failings of neoliberalism.

These fields challenge both economists and theologians to reconsider the purpose of economic activity: not merely to generate wealth but to reflect and promote values like justice, dignity, and the flourishing of all humanity.